Organization Design may be defined as the total pattern of structural elements and patterns used to manage the overall

organization Organizational Design should be seen as a tool for the implementation of organizational strategies and the attainment of organizational goals.

Models of Organizational Design: The Bureaucratic Model The Behavioral Model

Given by Max Weber, a German sociologist A bureaucracy is defined as an organization founded on a legitimate and formal system of authority. Weber considered bureaucratic organization as being logical, rational and highly efficient.

Ideal bureaucracy has following characteristics:

Each organization should create an absolute and clear division of labor and staff each job with an expert in that particular staff. Should establish a hierarchy of position Should establish a concise and consistent set of rules and regulations Should establish specific personnel policies and practices Managers should conduct business in an impersonal manner, maintaining an appropriate social distance from their sub ordinates

First model of OD, still serves as basic foundation for the understanding and application of new OD approaches Despite the changes in technology and workers attitude, operational efficiency and effectiveness can still be improved by the selective application of such bureaucratic principals.

Example: McDonalds

Reflects the social and psychological implications of organizational life Following are the two behavioral models of OD:
Socio Technical systems theory Likerts Systems 4 organization

Establishes two premises for OD:

a social system that provides the framework for all the human interactions that sustain both the formal and informal organizations a technical system that provides the framework for the tasks that produce the organizations goods and services

Rensis Likerts research deals with the following eight characteristics of organizations: 1. 2. 3. 4. 5. 6. 7. 8. The The The The The The The The Leadership Process Motivation Process communication Process Interaction Process Decision Process Goal Setting Process Control Process Performance Goals

Strengths:
Emphasis on behavioral processes organization No best way to design the organizations of the

Technology Environment Size

Downsizing De-jobbing Borderless Structures Information Processing Imperatives

Tall Hierarchy Paternalistic relationship b/w boss/ subordinate High degree of formalization with endless paperwork Divisional structure with little delegation Bloated Organization structure